• TRU, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday.
• The surge appears to be due to traders mistakenly connecting it with TUSD, a stablecoin that was previously issued by TrueFi but is no longer affiliated with them.
• Binance minted $50 million of TrueUSD (TUSD) stablecoin which sparked speculation among crypto traders.
TRU Token Rallies Over 200% After Binance’s TUSD Mint Sparks Speculation
The rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but now no longer is.
Background Information
TRU, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday in an hour according to CoinMarketCap data. This was sparked by Binance minting $50 million of TrueUSD (TUSD) stablecoin which caused speculation among crypto traders regarding its use in trading on the exchange after regulatory crackdowns on Paxos-issued BUSD.
Separation Between TrustToken & TrueFI
TrustToken sold TUSD in 2020 to a firm called Techteryx and separated from the TrueFi protocol last year as they embarked on a road to decentralize their platform. All assets and IP were transferred to the legal entity “TrueFi DAO’s” AKA The TrueFI Foundation.
Price Movement & Reactions
TRU surged as high as 14.6 cents from 4.4 cents before later paring some of the gains and currently stands at around 11 cents at press time according to CoinDesk data . Earlier this week, Paxos said it would halt minting BUSD on orders from regulators and withdrawals will be suspended for 30 days starting Feb 18th 2021 .
Conclusion
The surge in TRU’s price appears to have been triggered by confusion between TUSD and TRU after Binance’s move involving the former caused speculation amongst crypto traders regarding its potential use on their platform post regulatory crackdowns on PAXOS-issued BUSD.